Who is the mother company of Duracell batteries?
Duracell, the renowned battery brand established in 1964, is currently owned by Berkshire Hathaway Inc., the multinational conglomerate led by Warren Buffett. The acquisition occurred in 2016 when Berkshire Hathaway purchased Duracell from Procter & Gamble in a complex equity swap deal valued at approximately $4.7 billion. As a wholly-owned subsidiary, Duracell operates under Berkshire’s consumer products division while maintaining its global manufacturing and R&D infrastructure for alkaline batteries, lithium-based products, and specialty power solutions.
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How did Berkshire Hathaway acquire Duracell?
Berkshire Hathaway acquired Duracell through a unique stock-for-stock transaction with Procter & Gamble in 2014, finalized in 2016. This strategic move allowed P&G to shed non-core assets while Berkshire gained a stable consumer brand.
The acquisition structure avoided cash expenditure by exchanging P&G’s Duracell shares for $1.7 billion worth of Berkshire stock that P&G already held. Pro Tip: This tax-efficient deal showcases Buffett’s preference for “elephant-sized” acquisitions of durable brands with pricing power. For context, Duracell holds 25% global market share in alkaline batteries, generating over $2 billion annual revenue pre-acquisition.
What subsidiaries operate under Duracell?
Duracell maintains regional manufacturing subsidiaries including Duracell China Ltd. and Duracell North America. These entities handle localized production while adhering to centralized quality standards.
Through its OEM division, Duracell PowerSource serves industrial clients requiring custom battery solutions. Warning: Counterfeit operations often mimic these subsidiary names—always verify supplier certifications. A real-world example is Duracell’s Belgian plant producing OptiFlow™ technology cells for European automotive applications, demonstrating vertical integration.
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FAQs
Does Duracell manufacture lithium batteries?
Yes, Duracell produces lithium coin cells (CR2032) and lithium-ion rechargeables. Their Ultra Lithium series offers 20-year shelf life for low-drain devices.
Is Duracell involved in EV battery development?
While not directly in EV batteries, Duracell supplies auxiliary power systems for electric vehicles through industrial partnerships requiring high-reliability 12V solutions.